Desire Petroleum identifies new leads from Falklands seismic survey

Desire Petroleum (LON:DES), the oil and gas exploration group active in the Falkland Islands, said this morning that it had identified two new leads from the early results of a 3D seismic survey over its acreage in the North Falkland Basin. Desire has drilled six disappointing wells since February 2009 and has now completed a detailed survey over parts of its licences in order to indentify new targets. In April, Desire drilled, plugged and abandoned the Ninky well, which was the final well contracted under the terms of its agreement to use the Ocean Guardian rig, which has also been operating for Desire's partner in the region, Rockhopper (LON:RKH). Rockhopper is still drilling in the region and is currently mid-way through the 4/10-5 appraisal well, which is attempting to firm up the details of the company's May 2010 Sea Lion discovery, which remains the only major discovery in the North Basin so far. The latest 3D seismic acquisition programme covered approximately 1,416 square kilometres in Tranches C, D, F and adjacent open areas. Combined with company's existing 3D data, these new data provides almost full coverage of the East Flank Play Fairway on Desire's acreage and extended coverage of the Liz area, Ann, Pam and Helen prospects. A planned extension of the survey to the south was curtailed due to poor weather conditions. The fully processed data for the northern part of Tranche D and the Ann prospect area are being fast-tracked and are expected to be available in July. A fully merged data set covering all prospective areas is expected to be available towards the end of 2011. However, Desire said the preliminary raw stack data had been received for the area at the northern end of Tranches C and D and the initial indications for new prospects were "encouraging". In particular, two new leads, Beverley and Shona, have been identified so far. The Shona lead is at the same stratigraphic level as the Rockhopper Sea Lion discovery and extends northwards to the block boundary of Tranche D, while the Beverley lead is at a shallower stratigraphic level and is mapped wholly within Tranche D. Desire's chairman, Stephen Phipps, said: "We are pleased with the preliminary results from the new seismic data and feel that it highlights new prospectivity within our acreage. We anticipate the prospect inventory will continue to grow as the fully processed seismic data are delivered and interpreted."